Research on Financing Risk Control Based on Small and Medium Sized Enterprises

Objectives: Funds are important for the enterprises as blood for body. Sufficient ensure the enterprise to develop for the long time. What’s more, sufficient funds can ensure the companies to do what it wants to do at any time. So fund management is still the core of the finance management for the companies. The companies financing is the process of the collecting funds. In China, according to the modern enterprise, among the registered enterprise, medium and small-sized enterprises are 99%. Methods: Medium and small-sized enterprises want to succeed facing the violent market competence. From native and alternative status, because of the small scale, resisting risk, limited management and loan ability, there are contraction and ownership barriers between the commercial banks and medium and small-sized enterprises. Government law and policy is not full. Capital market should be unblocked. Results: According to corporate financing theory, native and alternative financing status, financing channel in market and the example of middle-little company. The paper discount on notes, supply chain financing, application of floating, bank loan and alternative brand tactics union. Conclusion: At last the research financing tactics and risk management. I hope tossing out a brick to attract jade for medium and small-sized enterprises financing through the study.

Optimal Operation and Financing Decisions in Green Supply Chain with a Capital-Constrained Manufacturer

Capital constraint, immensely existing in practice, became major stressors for manufacturers during the green research and development (R & D) triggered by managers integrating green concept into their business models. Considering the initial capital of a capital-constrained manufacturer, this paper formulates a Stackelberg game model comprising a manufacturer and a retailer, to discuss the optimal operation and financing decisions under the bank financing channel and trade credit financing channel, to detect the relationship between the manufacturer’s initial capital and green R & D investment, and to find which financing channel is better by comparing the two financing channels when the same initial capital is set. According to the above analysis, the results find that the capital-constrained manufacturer prefers financing only when meeting certain conditions. Furthermore, financing might be detrimental to the manufacturer but always beneficial to the retailer. Especially, under trade credit financing channel, the profit improvement of the retailer is higher than the manufacturer in the same financing channel, which suggests that the retailer has strong internal motivation to cooperate with the manufacturer from the perspective of financing.

SME Financing in MENA: A Quantitative and Qualitative Analysis of Multilateral and Bilateral Development Lenders’ Intermediated Lending Practices

This paper documents for the first time the considerable increase of bilateral and multilateral financial institutions’ support to small- and medium-sized enterprises (SMEs) in the Middle East and North Africa (MENA), following the political unrest and civil strife across the region since 2011. Focusing upon intermediated lending, the main financing channel, it assesses the underlying economic logic and implementation of this kind of SME financing. It is found that SMEs’ contribution to economic development is insufficiently well understood and, to some extent, has been misinterpreted, which implies that development banks’ lending operations lack appropriate targeting to achieve economic and social lending objectives. A review of the academic literature on financial exclusion and development finance, moreover, concludes that the lenders’ reliance upon large, often foreign-owned, commercial banks is not likely to achieve the desired developmental impact.

Financing a capital-constrained supply chain: factoring accounts receivable vs a BCT-SCF receivable chain

Purpose Blockchain-driven supply chain finance (BCT-SCF) has recently been receiving increased global attention. A number of business programmes have been carried out using this approach, but existing research has rarely focussed on this novel SCF model. This paper aims to fill this gap by proposing a mathematical model to analyse the value of BCT-SCF. Design/methodology/approach First, this paper considers a multi-period two-echelon supply chain consisting of a capital-constrained supplier and a newsvendor-like retailer. Then, two financing channels are proposed. The supply chain actors can either factor accounts receivable (AR) from a bank or obtain financing through a BCT-SCF platform by which AR can be converted into a bill receivable and used to make payment. Further, to investigate the preferences of all actors between the two financing channels, this paper compares the two channels and examines how the degree of financial constraints and the cost of implementing the BCT-SCF model impact the financing preferences of all actors. Findings BCT-SCF model can help a supply chain realise its optimisation both in production and financing efficiency, the preference for the BCT-SCF model increases as the initial capital of supplier and the BCT-SCF platform usage fee rate decrease. Practical implications This research bridges the gap between theoretical analysis of BCT-SCF and its realistic application. The results demonstrate that with the BCT-SCF model, a win-win situation among supply chain actors is possible, which is helpful for the supply chain to choose a more efficient financing channel. Originality/value This research introduces a mathematical model based on the “receivable chain” of CZBank and the model is set in a multi-period supply chain, which is the first time BCT-SCF has been considered as part of a more complex but realistic background setting.

The Effects of Financing Channels on Enterprise Innovation and Life Cycle in Chinese A-Share Listed Companies: An Empirical Analysis

This paper offers an empirical analysis of the effects of financing channels on innovation and the regulatory effect of the enterprise life cycle based on data published from 2008 to 2017 on publicly traded companies in China. The results show that government subsidies, tax preferences, self-owned funds, and equity financing have significant positive incentives for enterprise innovation, and the incentive intensity is gradually weakened while bank loans will hinder enterprise innovation. The impacts of various financing channels on enterprise innovation vary with the different stages of the enterprise life cycle, and the overall performance is weakened with the advancement of the life cycle. According to the grouping research of property rights, it is found that the impacts of various financing channels on the innovation of non-state-owned enterprises are more significant than those of state-owned enterprises. Further research finds that the influence of each financing channel on enterprise innovation is U-shaped or inverted U-shaped, indicating that there is a moderate range of each financing channel. This study is of great significance to fully understand the impacts of various financing channels on enterprise innovation and the regulatory role of the enterprise life cycle and to optimize the allocation of innovation resources.

Externally Financed Growth and Quality Accounting Information

This study investigates the association between quality accounting information (QAI) and externally financed growth (EFG), taking a sample of 214 firms in Brazilian stock exchange from 1998 to 2015. EFG is estimated from the sales percentage approach to financial planning. QAI is estimated according to the accruals quality model proposed by Dechow and Dichev and modified by McNichols. The hypothesis that signaling efficient accounting information marginally influences and positively EFG is tested by multiple linear regression with estimation by OLS and could not be rejected. It is inferred that QAI is a significant attribute in contributing to the firm's access to the external financing channel. This study broadens the discussions about the themes in the Brazilian scenario, shedding light on the importance of the practice of the dissemination of quality information for the growth of firms in the Brazilian context.

MONETARY TRANSMISSION MECHANISM UNDER DUAL FINANCIAL SYSTEM IN INDONESIA: CREDIT-FINANCING CHANNEL

The presence of Islamic and conventional banking in the dual financial system of Indonesia equally hold the role as financial intermediator which theoretically banks collect fund from the debitors to be distributed to creditors. However, along with the changing of time there has been a development in the financial industry, when financial deregulation occurs, where the role of providing credit is not only owned by the banks but also other financial institutions. As the result, banks are no longer considered as the center of financial intermediation but could be replaced by other financial instruments. This study aims to reconsider the role of banking as financial intermediation in the monetary transmission mechanism using three methodoligal approaches which are Vector Autoregression and Vector Error Correction Model (VAR-VECM), Error Correction Model (ECM), and Autoregressive Distributed Lag (ARDL). The long-term results of ECM and VECM estimations both show that credit and finacing channel are still relevant to be employed in the monetary transmission mechanism after the development of financial sector and the change of monetary policy, yet only have an impact to economy and do not give effect to inflation. While the result of ARDL estimation indicates that none of the variables affect the monetary policy objectives which means that credit and financing channel are considered to be getting weaker in the monetary transmission mechanism. Keywords : Monetary Transmission Mechanism, Credit Channel, Dual Financial System JEL Classification: E51, E52, E58